New principles for wage scales

Wednesday, Jun 05, 2013 17:24

In formulating and applying the wage scale and payroll, the principle of equality and nondiscrimination must be ensured. — Photo nld.com.vn

(Biz Hub) — On May14, 2013, the Government issued Decree No. 49/2013/ND-CP guiding the implementation of a number of Articles of the Labour Code on wages.

The Decree stipulates principles for setting up wage scales and payrolls. In detail, beside the regulation that the lowest wage level of the most simple work or title in normal labour conditions must not be lower than the region-based minimum wage level prescribed by the Government, the Decree also stipulates that the lowest wage level of the work or title requiring employees to be vocational trained (including employees trained by enterprises themselves) must be at least seven per cent higher than the region-based minimum wage levels prescribed by the Government; the wage level of work or title with the heavy, hazardous and dangerous working conditions must be at least five per cent higher than the wage level of work or title of equivalent complexity but in normal working conditions, and at least seven per cent higher for those working in specially heavy, hazardous and dangerous working conditions.

Besides, when formulating and applying the wage scale and payroll, the principle of equality and nondiscrimination must be ensured.

Under the new Decree, enterprises must apply experimentally their newly set labour norm before it is officially promulgated. Enterprises must adjust their labour norm if the actual productivity is five per cent lower or 10% higher than the assigned norm, or the actual performance during a given time period is 5% higher or 10% lower than the assigned norm.

This Decree takes effect from July 1, 2013. However the Decree provides that the provisions therein shall be applied from May 1, 2013.— bizconsult law LLC



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